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News
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FMPA
Natural Gas Power Plant Proposal Wins First Approval in Multi-Step
Process
ORLANDO,
Fla., July 11, 2005 – The Florida Public Service Commission
(PSC) voted unanimously to approve Florida Municipal Power
Agency’s (FMPA) proposal to construct a natural gas-fired
power plant in St. Lucie County, Fla., near the city of Fort
Pierce. The Commission’s Determination of Need for the
proposed plant is the first step in a multi-step state and
local approval process.
“In
this decision, the Public Service Commission acknowledged
that additional electric generation is needed to supply the
growing energy needs of Florida’s Treasure Coast region
and communities throughout Florida. The Commission also verified
that FMPA’s investigation of power supply alternatives
was rigorous and thorough, and it concluded that FMPA’s
proposal is the most economical option to fill its customers’
power needs,” said FMPA General Manager and CEO Roger
Fontes.
FMPA is
a wholesale power agency owned by municipal electric utilities
in Florida. Power from the proposed facility, known as the
Treasure Coast Energy Center, will serve electric customers
in Fort Pierce, Vero Beach, Lake Worth and Clewiston, along
with the cities of Bushnell, Fort Meade, Green Cove Springs,
Havana, Jacksonville Beach, Key West, Kissimmee, Leesburg,
Newberry, Ocala and Starke.
FMPA’s
proposal is to build a high-efficiency, natural gas-fired
unit that will generate 300 Megawatts, enough power to serve
approximately 60,000 homes in Florida. This power plant, with
its advanced environmental control technologies, will be one
of the lowest emission plants in Florida and one of the highest
efficiency plants in the state.
Treasure
Coast Energy Center will be wholly owned by FMPA, but it will
be operated under contract by Fort Pierce Utilities Authority.
FMPA selected the plant’s location because it is near
several FMPA cities in the Treasure Coast and southeast Florida
that are experiencing increased demand for electricity. The
proposed plant location would also be well-positioned to avoid
congestion on the state’s high-voltage electric transmission
system.
Electricity
from the new facility is needed to support the increasing
electricity usage of communities in the Treasure Coast and
throughout Florida, to replace power purchase contracts that
are due to expire and to displace the use of older, less efficient
generation. FMPA members began planning for these power needs
more than a year ago by completing a study that provides a
blueprint for future power supply development. The plan identifies
the best combination of resources to provide reliable power
at the lowest cost. Results of the study indicate that FMPA’s
cities will have a significant need for new power generation
beginning in 2008 and recommend filling that need with a high-efficiency,
natural gas-fired unit.
FMPA investigated
a variety of power supply options, including renewable energy
generation and energy conservation, to ensure its customers
receive the most cost-effective and dependable option. Also,
FMPA issued a request for proposals in September 2004 seeking
to purchase power from another entity rather than build a
new unit. The proposals received were evaluated based on power
cost and other factors including reliability and risk. Both
investigations showed that building a new unit is the best,
most economical option. FMPA’s investigations were submitted
to the PSC for review as part of the project’s Need
for Power application.
FMPA filed
applications with the PSC and other state regulatory authorities
in May to begin the multi-step approval process prescribed
by Florida’s Power Plant Siting Act. The law directs
a number of state, federal and local government agencies to
review a proposed new electrical power plant.
As a first
step in the process, the PSC must determine whether the proposed
plant is needed based on the need for electric system reliability,
the need for adequate electricity and whether the proposed
plant is the most cost-effective alternative. At its hearing
on July 8, the Commission unanimously agreed the proposed
Treasure Coast Energy Center fully satisfies those qualifications.
An order formalizing the Commission’s approval is scheduled
to be issued by July 28.
The next
milestones in the approval process include a local land use
hearing, a site certification hearing and, eventually, final
approval by the Florida Governor and Cabinet. The entire process
is expected to take more than a year and involve two public
hearings in Fort Pierce. When this process is complete, FMPA’s
member cities will make the final decision whether to finance
and construct the proposed plant.
For
more information on this proposed power plant, click here.
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Florida
Municipal Power Agency (FMPA) is a wholesale power company
owned by 29 municipal electric utilities. FMPA provides economies
of scale in power generation and related services to support
community-owned electric utilities. The members of FMPA serve
approximately 1.8 million Floridians. FMPA’s members
include Alachua, Bartow, Bushnell, Chattahoochee, Clewiston,
Fort Meade, Fort Pierce, Gainesville, Green Cove Springs,
Havana, Homestead, Jacksonville Beach, Key West, Kissimmee,
Lake Worth, Lakeland, Leesburg, Moore Haven, Mount Dora, New
Smyrna Beach, Newberry, Ocala, Orlando, Quincy, St. Cloud,
Starke, Vero Beach, Wauchula and Williston. Additional information
is available on the Internet at www.fmpa.com.
FMPA Contact:
Mark McCain
Public Relations/Public Affairs Manager
407 355-7767
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